The State of Savings, January 2025

According to the Yahoo Finance/Marist Poll 2025 National Survey on the State of Savings, Americans in banked households are not turning cartwheels over the amount of money they have saved. In fact, only one in ten banked households nationally say they are completely satisfied with the amount of money they have put away, and about one in five say they have saved more in 2024 than in 2023. Still, a plurality of banked households report optimism about their future savings.  
 
When thinking about the biggest hurdle they face to saving more, the cost of living is the leading challenge. This is not surprising given that about two in three Americans living in banked households say the cost of living for the average family in their area is not very affordable or not affordable at all. 
 
If faced with a financial emergency, the top three solutions for banked households would be to: spend out of their savings, reduce spending on other things, and work more. However, about one in three Americans living in banked households would not have enough money to pay their bills or expenses for even a month, if faced with loss of a job or income. 
 
On many of these questions, generational and gender differences exist. The data indicate that Millennials and women are feeling the financial pinch more so than their counterparts. 

Key Points

  • Banked households in America are not enthusiastic about the money they have saved. 26% say they are somewhat satisfied with the amount of money they have saved while 12% are very satisfied. Only 10% are completely satisfied. 19%, though, are completely dissatisfied, 16% are very dissatisfied, and 17% are somewhat dissatisfied.
    • Pluralities of Gen Z (36%), Millennials (44%), and Gen X (38%) are very or completely dissatisfied with the amount of savings they have. This compares with only 23% of Baby Boomers and those in the Silent/Greatest Generation.
    • Women (40%) are more likely than men (28%) to be very or completely dissatisfied with the amount of money they have saved. This is especially true for women in Gen X (43%), Gen Z (50%), and Millennials (54%).
  • Banked households nationally have made little progress in bolstering their bank accounts. Compared with last year, 48% say they have saved less money, and 30% say they have saved about the same amount. 21% report they have saved more.
    • Regardless of generation, at least a plurality in each generation has saved less money this year than in 2023. Gen X (54%) and Millennials (50%) are more likely than their counterparts to say they have saved less.
    • Women (53%) are more likely than men (42%) to say they have saved less in 2024 than in 2023.
  • Looking to 2025, banked households are cautiously optimistic about their savings. A plurality (44%) think they will be able to save more money, and 32% believe they will save about the same in the coming year. 24% think they will save less money.
    • Younger Americans in banked households are more likely to say they will save more (63% in Gen Z, 53% of Millennials, and 44% of Gen X). In contrast, a plurality of Baby Boomers and those in the Silent/Greatest Generation (44%) report that they will save about the same amount in 2025.
    • A gender gap exists. Men (46%) are more likely than women (41%) to say they will save more money in 2025. Women (27%) are more likely than men (20%) to say they will save less.
  • Nearly half (47%) of banked households cite the cost of living as their biggest challenge to saving money.
    • While this hurdle spans generations, Gen Z (39%) are less likely to cite the cost of living as an obstacle to saving than their elders. 14% say they have too many financial obligations; 13% say they spend extra money on things they enjoy, and 12% cite a change of income or employment status.
  • More than two in three (67%) banked households in America say the cost of living in their area for the average family is not very affordable or not affordable at all.
    • Millennials (71%) and Gen X (73%) are more likely than Gen Z (64%) and Baby Boomers (59%) to feel squeezed by the cost of living.
    • Women (72%) are more likely than men (61%) to say the cost of living for the average family is not affordable. With the exception of women who are Baby Boomers or members of the Silent/Greatest Generation, at least three in four women in younger generations see the cost of living as being too high where they live. Still, more than six in ten female Baby Boomers or members of the Silent/Greatest Generation (63%) believe the cost of living for the average family is not affordable.
  • While close to six in ten banked households nationally either live comfortably (27%) or meet their basic expenses and have a little left over for extras (31%), more than four in ten describe their personal financial situation less positively. 30% report they have just enough to meet their basic expenses, and 12% say they do not have enough to cover their basic costs.
    • Baby Boomers and those in the Silent/Greatest Generation (40%), especially men (44%) of these generations, are more likely to say they live comfortably. In contrast, Millennials (17%), especially females (22%) say they do not have enough to meet their basic expenses.
  • If faced with a financial emergency and left unable to pay their bills, the top three solutions that banked households would employ would be: spend out of their savings (26%), reduce spending on other things (15%), and work more or get an extra job (14%).
    • Generational differences exist. Gen X (23%) and Baby Boomers and the Silent/Greatest Generation (39%) are more likely than their younger counterparts to spend out of their savings. Gen Z (15%) and Millennials (15%) would be more likely than their elders to turn to family or friends for money.
    • A gender gap also exists with men (29%) more likely than women (23%) to say that they would turn to their savings. Women (13%) are more likely than men (7%) to say they would turn to their friends and family.
  • If faced with a loss of job or income, about one in three banked households (33%) say they would not be able to cover their bills and expenses for even one month. 26% say they could get by for one to three months, while 18% report they could cover their expenses for four to six months. Three percent report that they could pay their bills for seven to nine months while 10% say they could get by for ten to twelve months. Nine percent say, despite a loss of job or income, they could manage financially for a year or more.
    • Gen Z (38%) and Millennials (41%) are more likely than other generations to say they could not pay their bills for even a month. In contrast, Gen X, Baby Boomers, and members of the Silent/Greatest Generation are more likely than younger banked households to manage for ten months or more.
    • Women (39%) are more likely than men (28%) to say they would be unable to cover their bills and expenses for even one month. Men are more likely than women to say they could survive for 10 months or more.
  • Six in ten banked households in America (60%) are more optimistic about their finances in the coming year with Donald Trump as President. There is cross-generational consensus on this question, with a majority in every generation saying they are more optimistic. Gen Z (70%) is the most optimistic.